Italy's Eni chemicals segment net loss narrows to €23m in Q2

01 August 2012 07:56  [Source: ICIS news]

SINGAPORE (ICIS)--Eni has posted a second-quarter adjusted net loss of €23m ($28.4m) for its chemicals division this year from €25m in the same period a year earlier, amid faltering demand, the Italian energy major said on Wednesday.

“The chemicals division reported an adjusted operating loss of minus €26m, slightly better than the second quarter of 2011 [€32m], against the backdrop of weak commodity demand impacted by the downturn,” the company said in a statement.

For the first half of this year, the chemical division’s adjusted net loss widened to €143m, compared with €30m in the same period in 2011.

“The operating loss incurred in the first half of 2012 was minus €195m, sharply lower compared with the first half of 2011 [€45m] as commodity margins in the first quarter of 2012 plunged due to the escalating cost of oil-based feedstock leading to a negative benchmark margin of cracking,” the company said.

On a group level, Eni’s adjusted net profit rose to €1.46bn in the second quarter of this year, compared with €1.44bn in the same period a year earlier.

“Eni expects the outlook for 2012 to be a challenging one as the global economic recovery loses steam, and is weighed down by weakening growth prospects in the eurozone,” the company said.

“In relation to short-term financial projections, Eni assumes a full-year oil price of $117/bbl for the Brent crude benchmark as steady demand from China and other emerging economies, and ongoing geopolitical risks and uncertainties support the oil market, which are partly offset by a recovery in the Libyan output,” it added.

($1 = €0.81)

By: Nurluqman Suratman

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